Venezuela’s PDVSA transfers oil at sea despite customer qualms

Venezuela has begun testing sea-borne oil transfers to ease a severe backlog of crude deliveries from its main terminals, according to sources and data, as chronic delays and production declines could temporarily halt state-run PDVSA’s supply contracts if they are not cleared soon. FILE PHOTO: A man walks past a gas station with the logos of the Venezuelan state oil company PDVSA in Caracas, Venezuela December 23, 2016. REUTERS/Carlos Garcia Rawlins/File Photo The company has told some customers it may declare force majeure, allowing it to temporarily suspend export contracts, if they do not accept new delivery terms, including sea-borne transfers. The delivery method entails specialized equipment and training and higher costs for ship owners and customers. But PDVSA is pushing ahead over customer doubts given the congestion at its ports and need to complete sales that are the lifeblood of the OPEC member. […]